National Debt Relief Dispels Myths About Credit Scores

February 01, 2015 (PRLEAP.COM) Business News
February 1, 2015 - National Debt Relief recently talked about in an article published January 30, 2015 how consumers may believe some credit score myths. The article titled "5 Credit Score Myths That You Need To Stop Believing" explains some of the most common myths about credit scores that people may be led to believe which can ultimately hurt their finances even more.

The article starts off by pointing out that consumers needs to appreciate the fact that their credit rating is a very important measurement of their credit behavior. The more the consumer lacks credit management skills, the less appealing their credit score would be. This can limit their financial options in the future such as getting a mortgage loan, a car loan or even co-signing a student loan for their children.

And if consumers are misled by myths about credit scores, they can be in for a harder time with their finances. The article points out that one of the most common myths is that consumers believe they only need to worry about one credit score. But the truth is that there is more than one source of this credit rating and they are handled by different companies or agencies. It is important to know that each of these agencies have different formulas and consumers need to be aware of the varying credit score ranges

Another myth the consumers tend to believe is that one key in increasing the credit score is wiping out their credit cards. Although it can help consumers in preventing unnecessary expenses, the lack of a credit history to go with can have a negative effect plus it can cause the credit utilization to rise and pull credit scores down.

The article also shares that the assets as well as the educational background of the consumer does not have an effect on their credit score. What the credit report reflects is a person's credit behavior and not how much money they have in the bank or if they have a masteral degree. To read the full article, click this link:

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